REG - dotDigital Group plc - Interim Results
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RNS Number : 9508V dotDigital Group plc 10 March 2026
10 March 2026
Dotdigital Group plc
("Dotdigital" or the "Group")
Interim results for the six months ended 31 December 2025
Dotdigital Group plc (AIM: DOTD), the leading provider of an AI-powered
customer experience and data platform (CXDP) for intelligent, personalised
marketing at scale, announces its unaudited interim results for the six months
ended 31 December 2025 ("H1 FY26").
Financial Highlights
· Trading in line with full-year market expectations on a constant currency
basis(1)
· Forward-looking contracted ARR (core CXDP) increased 13% (6% organic) to
£75.4m (H1 FY25: £67.0m)
· Recurring revenue recognised from core CXDP increased 11% (4% organic(2)) to
£37.3m, representing 84% of total revenue (H1 FY25: 80%)
· Total Group revenue (including low-margin CPaaS) increased 4% to £44.2m (H1
FY25: £42.4m) and 9% on a normalised(3) basis (3% on an organic normalised
basis)
· Average revenue per customer 'ARPC' (excluding Social Snowball) increased 7%
on a normalised basis to £1,968 per month (H1 FY25: £1,830 normalised or
£1,916 reported)
· Adjusted EBITDA of £13.6m / 31% margin (H1 FY25: £13.8m / 33% margin) and
adjusted profit before tax of £8.9m / 20% margin (H1 FY25: £10.0m / 24%
margin) against particularly strong comparatives and following Social Snowball
go to market investment which will benefit H2
· Cash at 31 December 2025 of £36.1m (31 December 2024: £45.7m), following the
$20m consideration payment for Social Snowball
· FX headwinds with constant-currency growth rates approximately 1% higher than
reported above in the first half and a greater FX impact now expected in the
second half
Operational Highlights
· Core CXDP momentum continued, with contracted ARR growth supported by demand
for integrated, ROI-driven marketing platforms
· Product delivery remained strong, with continued WinstonAI enhancements and
material momentum in WhatsApp adoption, including message volumes up 2.3x vs
H2 FY25
· Social Snowball performing well post-acquisition, with ARR up c. 30%
annualised since completion and growth expected to continue to accelerate as
go-to-market investment takes effect
· Partner ecosystem deepened, with integration-connected revenue up 5%
year-on-year and Shopify up 44% year-on-year, supporting adoption and
expansion across the CXDP
Post-Period Highlights
· March 2026 acquisition of Alia, an AI-powered pop-up and email and SMS
list-growth tool, expanding zero-party data capture capabilities and
strengthening Dotdigital's Shopify footprint
· Go-to-market leadership will be strengthened by the upcoming appointment of a
Chief Revenue Officer, aligning execution across regions and supporting
scalable growth
· The Board remains confident of delivering FY26 results in line with market
expectations on a constant currency basis, supported by the Group's strong
cash position, high-visibility recurring revenues and a strong and growing
product portfolio.
Milan Patel, Chief Executive Officer of Dotdigital, commented:
"The Group delivered a solid first half against a strong comparator, with
continued double‑digit growth in core ARR, improving revenue quality and
resilient profitability. We continue to broaden the CXDP through disciplined
innovation and M&A, with the post-period acquisition of Alia further
strengthening our ability to help customers capture, activate and monetise
audiences across the lifecycle. While customers remain cost‑conscious,
demand for integrated platforms with clear ROI remains strong, and we remain
well positioned to execute on our strategy for the second half and beyond."
Analyst presentation
Management will host a virtual results presentation and Q&A session for
analysts at 09.00 GMT today, Tuesday 10 March 2026. Analysts wishing to attend
should contact dotdigital@almastrategic.com for details.
Investor presentation
Management will also host a virtual results presentation and Q&A session
open to all existing and potential shareholders via the Investor Meet Company
platform at 12.00 GMT on Thursday 12 March 2026. Investors can register here:
https://www.investormeetcompany.com/dotdigital-group-plc/register-investor
(https://www.investormeetcompany.com/dotdigital-group-plc/register-investor)
Notes
(1) Consensus at the time of the trading update: Revenue £91.9m, Adjusted
EBITDA £29.1m, Adjusted PBT £20.0m
(2) Organic excludes Social Snowball, acquired June 2025
(3) Normalised for the non-renewal of the non-core low-margin CPaaS contract
announced 26 June 2025
(4 Cash EBITDA is an alternative performance measure and is defined as
earnings before interest, taxation, depreciation and amortisation, adjusted to
exclude material non-cash expenses, including share-based payments. Cash
EBITDA is not a measure defined under IFRS and may not be comparable with
similarly titled measures used by other companies.)
For further information please contact:
Dotdigital Group plc Tel: 020 3953 3072
Milan Patel, CEO
Tom Mullan, CFO investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)
Alma Strategic Communications Tel: 020 3405 0210
Hilary Buchanan dotdigital@almastrategic.com
David Ison
Will Merison
Canaccord Genuity (Nominated Advisor and Joint Broker) Tel: 020 7523 8000
Bobbie Hilliam
Elizabeth Halley-Stott
Cavendish Capital Markets Limited (Joint Broker) Tel: 020 7220 0500
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital Markets
Singer Capital Markets (Joint Broker) Tel: 020 7496 3000
Shaun Dobson
Jen Boorer
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel
marketing automation technology to marketing professionals. Dotdigital's
customer experience and data platform (CXDP) combines the power of automation
and AI to help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their customer
data, identify valuable customer segments, and deliver personalised
cross-channel customer journeys that result in engagements, conversions, and
loyalty.
Founded in 1999, Dotdigital is headquartered in London with offices in
Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw
and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150
countries.
Operational Review
Introduction
Dotdigital delivered a solid first half against a strong comparator period,
with the core CXDP continuing to grow and the quality of revenue
strengthening. Forward-looking contracted ARR increased, reflecting sustained
demand for integrated platforms that help marketers unify data and
personalisation across channels and evidence ROI clearly, while mix improved
as a greater proportion of Group revenues came from recurring CXDP
subscriptions.
Dotdigital has been steadily broadening its CXDP, combining organic innovation
with disciplined M&A to expand workflow coverage and deepen customer
value. The post-period-end acquisition of Alia is an important milestone in
that strategy, strengthening the platform's ability to help customers grow and
activate first- and zero-party data and reinforcing the Group's position in
the Shopify ecosystem. With Alia added to the portfolio, Dotdigital is
extending coverage at the earliest point in the customer journey,
strengthening data capture and activation, and reinforcing its ability to help
customers drive measurable outcomes across channels.
The acquisition of Alia, alongside the additions of Fresh Relevance and Social
Snowball, reflects the Group's focused transition from a single-product email
marketing platform into a diversified, multi-product business with an expanded
international presence. The progress of this transition is evident in the
Group's key operating metrics. Since FY23, partner‑connected ARR has
increased from approximately 50% to well over 60% and US‑originated ARR has
doubled from approximately 15% to more than 30%, while the full proportion of
ARR generated outside the UK now stands at approximately 40% of Group ARR, up
from 25%. Taken together, these developments have supported a significant
expansion in the Group's scale: ARR has grown from £48.9m at the start of
FY23 to over £81m following completion of the Alia acquisition, while
adjusted profit before tax margins have been maintained consistently above 20%
per annum.
This scale and mix provide a strong foundation for the future. As AI-enabled
workflows become mainstream, the winners will be the platforms that let
marketers move faster without sacrificing trust, control or accountability.
Dotdigital combines high-quality data and consent management, enterprise-grade
governance, deep ecosystem integrations and owned delivery infrastructure that
protects sender reputation and inbox placement with an expanding set of
capabilities across the customer lifecycle, so customers can execute
sophisticated, personalised engagement at scale with confidence. The Board
believes the Group's model remains durable as the market evolves.
The Group continues to prioritise high-quality, forward-looking contracted
revenues and margin performance, supporting disciplined reinvestment in
product innovation and go-to-market initiatives, while maintaining discipline
in a mixed macro environment.
Financial Review
Core CXDP performance and quality of revenue
The core CXDP business remains the primary driver of value creation.
Forward-looking contracted ARR from the core CXDP business increased 13% to
£75.4m (H1 FY25: £67.0m).
The growth in ARR consisted of core CXDP net growth of £4.3m; acquired Social
Snowball ARR of £4.1m plus subsequent Social Snowball net growth of £0.6m
and negative currency movements of £0.8m. New logos in the period include the
British Royal Air Force, two further professional Rugby league clubs in our
ANZ region, Save the Children, PKF Littlejohn, FujiFilm, Helly Hansen,
Loughborough University and Serco.
Customer value indicators also improved, with gross retention up c. 2
percentage points and net retention up c. 1 percentage point year-to-date,
supported by lower churn as the elevated administration-related churn seen 12
to 18 months ago continued to unwind.
Recurring revenue from the core CXDP business recognised in the period
increased 11% to £37.3m (H1 FY25: £33.6m) and represented 84% of total
revenue (H1 FY25: 80%).
Total Group revenue, including the low-margin CPaaS business, increased 4% to
£44.2m (H1 FY25: £42.4m) and 9% on a normalised(3) basis (3% on an organic
normalised basis). The increase reflects continued growth in the core CXDP
business, partly offset by expected declines in the CPaaS business, following
the previously announced Board's planned non-renewal of a non-core low-margin
CPaaS contract, and the unwind of the strong H1 FY25 comparator. FX headwinds
impacted performance across the period on an actual currency basis and are
expected to be even stronger in the second half. On a constant-currency basis,
growth rates in the period are approximately 1% higher than those highlighted.
Average revenue per customer (ARPC) excluding Social Snowball increased 7% to
£1,968 per month on the prior half year after being normalised for the
planned non-renewal of the low margin customer announced during Summer 2025.
Customers remain cost conscious and sales cycles remain longer, largely
reflecting the Group's continued progress into higher-value deployments where
buying decisions involve more stakeholders and a broader scope of rollout,
although this has been stable over the last 12 months. Ongoing stack
consolidation remains a net opportunity for Dotdigital as organisations
prioritise fewer, more effective platforms with clear ROI.
Resilient profitability against strong comparator
The Group's adjusted PBT for the period was £8.9m (31 December 2024:
£10.0m), a margin of 20% (31 December 2024: 24%). As highlighted over the
previous year, the comparative period was an unusually strong comparator in
both the core CXDP business and the low‑margin CPaaS business as a result of
final contributions from an exited CPaaS contract and exceptional SMS volume
tied to specific transactional notification campaigns in H1 2025. In addition,
go to market investment were accelerated in Social Snowball which are expected
to benefit the growth rate in the second half and beyond.
Statutory profit before tax for the period was £6.2m (31 December 2024:
£8.4m) after exceptional and adjusting items of £2.7m (31 December 2024:
£1.6m); the increase in these items largely being as a result of Social
Snowball acquisition related items.
The effective tax rate on the statutory PBT for the period was unusually high
at 30% (31 December 2024: 25%), with the current period being adversely
impacted by approximately 3% as deferred tax charges were incurred as a result
of share award lapses occurring due to under performance in the share price
which are not expected to recur with such material effect in future periods.
The effective tax rate is further impacted by approximately 3% as tax losses
throughout the Group were materially utilised during the first half of FY25.
In turn this results in an adjusted diluted EPS of 2.26 pence per share for
the period (31 December 2024: 2.52 pence per share). All margins are expected
to return to market expected levels in the second half of FY26.
The Group embarked on its previously announced £3m share buyback during the
period, completing on £1.2m of this in the period and the balance shortly
after the period end.
Business Review: Platform strengths
Marketing teams continue to prioritise platforms that can prove ROI, unify
customer data with activation across channels, and operate with strong
governance as privacy expectations and regulation evolve. Rapid progress in AI
is reinforcing the premium on orchestration, workflow automation and embedded
measurement, so teams can move faster while keeping performance, trust and
accountability at the centre of execution.
Dotdigital's customer experience and data platform (CXDP) sits at the centre
of that workflow, bringing together customer data, segmentation and automation
with cross-channel execution across email, SMS, WhatsApp, push and web
experiences. The Group has also broadened workflow coverage through adjacent
capabilities within the portfolio, including Fresh Relevance for
personalisation, Social Snowball for influencer and advocacy-led acquisition,
and, post-period-end, Alia for on-site conversion and audience growth.
As AI adoption accelerates, the Board believes these structural strengths
become more valuable:
· Commercial alignment: Dotdigital is not priced on a per-seat basis. Customers
typically expand value through deeper adoption, higher-tier packages and
increased contacts and message usage.
· Data trust, governance and compliance: enterprise-grade controls that help
customers manage consent, privacy and reputational risk as standards and
regulations evolve.
· Deep integrations and ecosystem connectivity: broad integration coverage and
partner relationships that keep data flows and connectors effective as
adjacent platforms evolve.
· Trusted delivery infrastructure: owned messaging infrastructure and
deliverability controls that protect sender reputation and help legitimate
sending reach inboxes reliably at scale, supported by increasingly stringent
mailbox-provider requirements around authentication and sending practices.
· Suite architecture and expansion pathways: a modular platform that supports
"land-and-expand" adoption across data, channels and adjacent capabilities,
reducing reliance on any single point feature and increasing platform
stickiness over time.
This combination supports durable recurring revenues and a platform that is
difficult to replicate.
Acquisitions
Alia
Post period end, on 4 March 2026, the Group announced the acquisition of Alia
Software Inc., an AI-powered pop-up and email and SMS audience growth tool
built exclusively for Shopify merchants.
Alia is strategically important because it strengthens Dotdigital's platform
at the earliest moments of the customer lifecycle by converting anonymous
website visitors into known, consented audiences and capturing higher-quality
first-party and zero-party data that can be activated across the Group's CXDP.
It also accelerates the Group's product roadmap with a best-in-class on-site
conversion and list-growth capability, deepens the Group's Shopify ecosystem
presence and expands distribution via the Shopify App Store.
Alia has demonstrated strong momentum, serving 2,700+ customers with a 4.7/5
rating on the Shopify App Store and for the financial year ended 31 December
2025 ("FY25"), Alia reported recognised revenue of $4m, with ARR at 31
December 2025 in excess of $8m (31 December 2024: $1m). In FY25 Alia reported
cash EBITDA(4) in excess of $1m. Alia had net assets of $1.2m at 31 December
2025 and was acquired debt-free. All figures are unaudited.
The Board believes Alia expands the Group's workflow coverage in a way that
supports durable expansion economics: list growth drives larger addressable
audiences, which can increase downstream automation value, messaging volumes,
package upgrades and cross-sell into adjacent capabilities across the
platform.
Integration is expected to follow a phased approach, enabling the Group to
deliver incremental product benefits while maintaining continuity for existing
Alia customers.
The initial consideration for the Acquisition totalled $30m, with a total
maximum consideration of up to $60m dependent upon future performance. All
consideration is payable in cash, funded from existing cash reserves, and the
Acquisition is expected to be earnings-enhancing for the first 12 months of
consolidation. Should performance targets be achieved, the maximum
consideration payable would equate to two times ARR.
Alia will be integrated into the CXDP through a phased approach and
Dotdigital's core and ancillary capability, including messaging, will be
embedded into and bundled with Alia's offering, allowing the Group to deliver
incremental product benefits while maintaining service continuity for existing
customers.
Social Snowball
Following its acquisition in late June 2025, Social Snowball has performed
well and the integration is progressing to plan. ARR is up approximately 30%
on an annualised basis since acquisition, with an acceleration in growth rate
expected as go-to-market investments take effect. Social Snowball ARPC per
month increased from US$319 per month on acquisition to US$348 per month in
December. Social Snowball generated £2.3m of recurring revenue in the first
half, compared to approximately £1.2m in same half prior to acquisition.
The Group increased investment in go-to-market capability during the Period
and early H2 performance provides confidence in enhancing growth rates through
the second half.
Regions
All regions have maintained growth on a constant currency basis and the Group
will continue to focus its resources on capitalising on momentum in higher
growth regions or subregions. In particular, the Group aims to maximise the
scale that the Group now has in the US, circa 30% of ARR, in North America
post the acquisitions of Social Snowball and Alia. Post recent acquisitions
and complexities in reporting of the Group's growing number of multi region
customers, the Group is reviewing its methodology in respect of regional
growth rate reporting to ensure consistency. Full reporting on this will be
available in the full year financials.
Product innovation
Product development continued to reflect customer demand for sophisticated yet
easy-to-use platforms that unify data and personalisation across channels and
deliver measurable ROI. Functionality recurring revenues grew by 20% on HY-25
or 9% on an organic basis. During the period, the Group delivered enhancements
across the product suite, including continued strengthening of WinstonAI,
further momentum in WhatsApp adoption and the launch of CreatorSearch, a
creator discovery feature, within Social Snowball.
WhatsApp
WhatsApp adoption continued to build, with users sending 2.3x more WhatsApp
messages compared to H2 FY25 (128% growth). Black Friday and Cyber Monday
drove the biggest ever WhatsApp month in November 2025, with growth of more
than 400% versus the prior seasonal period.
WinstonAI and monetisation
WinstonAI is integrated into the CXDP to help customers work faster and drive
stronger outcomes. AI capabilities are available across packages, with more
advanced features and higher usage allowances unlocked at higher tiers,
reflecting the greater data and workflow complexity of larger deployments.
Most larger customers typically adopt the premium packages from day one. As
customers use these capabilities to improve performance, this can support
expansion in contacts and associated subscription fees, which in turn can
drive increased messaging usage and recurring volume-based fees.
Loyalty
The Group's loyalty product is now being tested in production environments by
early adopters, with positive results being generated for customers. The
product will complement the Group's core Dotdigital CXDP offering, adding
native loyalty programme functionality that is deeply embedded with a brand's
contact data. General availability is expected in July.
Roadmap focus
Looking ahead to H2 FY26 and beyond, the Group will focus product innovation
investment on strengthening data, AI with the release of MCP servers and 3
specific AI agents (analytics, segmenting data and campaign creation) and
further technology partner integrations, alongside continued enhancements to
internal infrastructure and processes.
Partnerships and integrations
The partner ecosystem continues to deepen, supporting adoption and expansion
across the platform. Revenue connected to integration partners grew 5% versus
the prior year. Standout organic growth came from Shopify of 44% or 118% when
also including the impact of Social Snowball. Shopify is now the Group's
second largest connected integration partner by revenue, representing 35% of
connected partner revenues, behind Adobe/Magento. Microsoft Dynamics grew 5%
and the ERP connection to NetSuite grew 5%.
The Group is particularly enthused with the impact of combining Alia's network
of Email and Marketing agency partners with the existing network of technology
and web agency partners, which are expected to bring further success for the
core product, including the new Loyalty product in the Shopify ecosystem as
well as for Alia's product outside of Shopify for both commerce and
non-commerce customers. Partners are very impactful in helping Dotdigital
expand its pipeline and increasing conversion rate.
Operations and scalability
During the period, the Group continued to invest in strengthening its
operational foundations to support scaling, while maintaining discipline on
costs and prioritising initiatives that improve execution and customer
outcomes.
The Group has taken steps to streamline its EMEA go-to-market function to
ensure an optimised structure and clearer accountability. The efficiencies
gained will be assessed for application across higher-growth regions during
H2, alongside other initiatives to support consistent execution and
scalability.
This will be led by a Chief Revenue Officer, a new role intended to centralise
and align go-to-market activities across regions, with a focus on expansion,
retention and enhancing customer lifetime value. The Group is in the final
stages of making this appointment and will provide an update in due course.
Alongside commercial execution, the Group's ongoing transformation of systems
and processes continued, with major progress made on its CRM replacement
programme. This is intended to improve data quality, reporting and workflow
efficiency across the organisation, supporting more consistent execution and
scalability as the Group grows internationally.
Current trading and outlook
Trading continues to be in line with the Board's expectations.
The Board remains confident in the Group's prospects and expects to deliver
FY26 results in line with constant currency market expectations, supported by
the high-visibility recurring revenues and a strong and growing product
portfolio. The Group's cash position and cashflow generation remains strong,
with cashflow generation being second half weighted in line with previous
years. Cash at 31(st) December 2025 totalled £36.1m prior to the Alia
acquisition for initial consideration of $30m. A modest overdraft facility is
being established to provide prudent support for mid-month working capital
needs, should it be required.
Dotdigital has built a powerful customer experience and data platform that
helps marketers turn first- and zero-party data into measurable outcomes at
scale. With WinstonAI integrated across key workflows, customers can plan,
execute and optimise cross-channel engagement across email, SMS, WhatsApp, ads
and web, with governance, deliverability and performance measurement embedded
as standard. The Board believes this combination of capability and
"under-the-bonnet" strength positions Dotdigital to remain central to
customers' marketing stacks as requirements become more demanding and
execution moves further towards automation. Despite macro pressures including
FX volatility, customer cost sensitivity and brand consolidation, which
presents both opportunities and challenges, with disciplined M&A having
provided extending workflow coverage, the Group is well placed to benefit from
ongoing consolidation onto fewer, more effective platforms, supporting
continued ARPC expansion and strong retention over time.
The Group remains well positioned to deliver sustainable growth and strong
cash generation through a differentiated, ROI-driven offering, disciplined
investment and a continued focus on high-quality recurring revenues.
Operational Highlights
· Core CXDP momentum continued, with contracted ARR growth supported by demand
for integrated, ROI-driven marketing platforms
· Product delivery remained strong, with continued WinstonAI enhancements and
material momentum in WhatsApp adoption, including message volumes up 2.3x vs
H2 FY25
· Social Snowball performing well post-acquisition, with ARR up c. 30%
annualised since completion and growth expected to continue to accelerate as
go-to-market investment takes effect
· Partner ecosystem deepened, with integration-connected revenue up 5%
year-on-year and Shopify up 44% year-on-year, supporting adoption and
expansion across the CXDP
Post-Period Highlights
· March 2026 acquisition of Alia, an AI-powered pop-up and email and SMS
list-growth tool, expanding zero-party data capture capabilities and
strengthening Dotdigital's Shopify footprint
· Go-to-market leadership will be strengthened by the upcoming appointment of a
Chief Revenue Officer, aligning execution across regions and supporting
scalable growth
· The Board remains confident of delivering FY26 results in line with market
expectations on a constant currency basis, supported by the Group's strong
cash position, high-visibility recurring revenues and a strong and growing
product portfolio.
Milan Patel, Chief Executive Officer of Dotdigital, commented:
"The Group delivered a solid first half against a strong comparator, with
continued double‑digit growth in core ARR, improving revenue quality and
resilient profitability. We continue to broaden the CXDP through disciplined
innovation and M&A, with the post-period acquisition of Alia further
strengthening our ability to help customers capture, activate and monetise
audiences across the lifecycle. While customers remain cost‑conscious,
demand for integrated platforms with clear ROI remains strong, and we remain
well positioned to execute on our strategy for the second half and beyond."
Analyst presentation
Management will host a virtual results presentation and Q&A session for
analysts at 09.00 GMT today, Tuesday 10 March 2026. Analysts wishing to attend
should contact dotdigital@almastrategic.com for details.
Investor presentation
Management will also host a virtual results presentation and Q&A session
open to all existing and potential shareholders via the Investor Meet Company
platform at 12.00 GMT on Thursday 12 March 2026. Investors can register here:
https://www.investormeetcompany.com/dotdigital-group-plc/register-investor
(https://www.investormeetcompany.com/dotdigital-group-plc/register-investor)
Notes
(1) Consensus at the time of the trading update: Revenue £91.9m, Adjusted
EBITDA £29.1m, Adjusted PBT £20.0m
(2) Organic excludes Social Snowball, acquired June 2025
(3) Normalised for the non-renewal of the non-core low-margin CPaaS contract
announced 26 June 2025
(4 Cash EBITDA is an alternative performance measure and is defined as
earnings before interest, taxation, depreciation and amortisation, adjusted to
exclude material non-cash expenses, including share-based payments. Cash
EBITDA is not a measure defined under IFRS and may not be comparable with
similarly titled measures used by other companies.)
For further information please contact:
Dotdigital Group plc Tel: 020 3953 3072
Milan Patel, CEO
Tom Mullan, CFO investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)
Alma Strategic Communications Tel: 020 3405 0210
Hilary Buchanan dotdigital@almastrategic.com
David Ison
Will Merison
Canaccord Genuity (Nominated Advisor and Joint Broker) Tel: 020 7523 8000
Bobbie Hilliam
Elizabeth Halley-Stott
Cavendish Capital Markets Limited (Joint Broker) Tel: 020 7220 0500
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital Markets
Singer Capital Markets (Joint Broker) Tel: 020 7496 3000
Shaun Dobson
Jen Boorer
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel
marketing automation technology to marketing professionals. Dotdigital's
customer experience and data platform (CXDP) combines the power of automation
and AI to help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their customer
data, identify valuable customer segments, and deliver personalised
cross-channel customer journeys that result in engagements, conversions, and
loyalty.
Founded in 1999, Dotdigital is headquartered in London with offices in
Manchester, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw
and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150
countries.
Operational Review
Introduction
Dotdigital delivered a solid first half against a strong comparator period,
with the core CXDP continuing to grow and the quality of revenue
strengthening. Forward-looking contracted ARR increased, reflecting sustained
demand for integrated platforms that help marketers unify data and
personalisation across channels and evidence ROI clearly, while mix improved
as a greater proportion of Group revenues came from recurring CXDP
subscriptions.
Dotdigital has been steadily broadening its CXDP, combining organic innovation
with disciplined M&A to expand workflow coverage and deepen customer
value. The post-period-end acquisition of Alia is an important milestone in
that strategy, strengthening the platform's ability to help customers grow and
activate first- and zero-party data and reinforcing the Group's position in
the Shopify ecosystem. With Alia added to the portfolio, Dotdigital is
extending coverage at the earliest point in the customer journey,
strengthening data capture and activation, and reinforcing its ability to help
customers drive measurable outcomes across channels.
The acquisition of Alia, alongside the additions of Fresh Relevance and Social
Snowball, reflects the Group's focused transition from a single-product email
marketing platform into a diversified, multi-product business with an expanded
international presence. The progress of this transition is evident in the
Group's key operating metrics. Since FY23, partner‑connected ARR has
increased from approximately 50% to well over 60% and US‑originated ARR has
doubled from approximately 15% to more than 30%, while the full proportion of
ARR generated outside the UK now stands at approximately 40% of Group ARR, up
from 25%. Taken together, these developments have supported a significant
expansion in the Group's scale: ARR has grown from £48.9m at the start of
FY23 to over £81m following completion of the Alia acquisition, while
adjusted profit before tax margins have been maintained consistently above 20%
per annum.
This scale and mix provide a strong foundation for the future. As AI-enabled
workflows become mainstream, the winners will be the platforms that let
marketers move faster without sacrificing trust, control or accountability.
Dotdigital combines high-quality data and consent management, enterprise-grade
governance, deep ecosystem integrations and owned delivery infrastructure that
protects sender reputation and inbox placement with an expanding set of
capabilities across the customer lifecycle, so customers can execute
sophisticated, personalised engagement at scale with confidence. The Board
believes the Group's model remains durable as the market evolves.
The Group continues to prioritise high-quality, forward-looking contracted
revenues and margin performance, supporting disciplined reinvestment in
product innovation and go-to-market initiatives, while maintaining discipline
in a mixed macro environment.
Financial Review
Core CXDP performance and quality of revenue
The core CXDP business remains the primary driver of value creation.
Forward-looking contracted ARR from the core CXDP business increased 13% to
£75.4m (H1 FY25: £67.0m).
The growth in ARR consisted of core CXDP net growth of £4.3m; acquired Social
Snowball ARR of £4.1m plus subsequent Social Snowball net growth of £0.6m
and negative currency movements of £0.8m. New logos in the period include the
British Royal Air Force, two further professional Rugby league clubs in our
ANZ region, Save the Children, PKF Littlejohn, FujiFilm, Helly Hansen,
Loughborough University and Serco.
Customer value indicators also improved, with gross retention up c. 2
percentage points and net retention up c. 1 percentage point year-to-date,
supported by lower churn as the elevated administration-related churn seen 12
to 18 months ago continued to unwind.
Recurring revenue from the core CXDP business recognised in the period
increased 11% to £37.3m (H1 FY25: £33.6m) and represented 84% of total
revenue (H1 FY25: 80%).
Total Group revenue, including the low-margin CPaaS business, increased 4% to
£44.2m (H1 FY25: £42.4m) and 9% on a normalised(3) basis (3% on an organic
normalised basis). The increase reflects continued growth in the core CXDP
business, partly offset by expected declines in the CPaaS business, following
the previously announced Board's planned non-renewal of a non-core low-margin
CPaaS contract, and the unwind of the strong H1 FY25 comparator. FX headwinds
impacted performance across the period on an actual currency basis and are
expected to be even stronger in the second half. On a constant-currency basis,
growth rates in the period are approximately 1% higher than those highlighted.
Average revenue per customer (ARPC) excluding Social Snowball increased 7% to
£1,968 per month on the prior half year after being normalised for the
planned non-renewal of the low margin customer announced during Summer 2025.
Customers remain cost conscious and sales cycles remain longer, largely
reflecting the Group's continued progress into higher-value deployments where
buying decisions involve more stakeholders and a broader scope of rollout,
although this has been stable over the last 12 months. Ongoing stack
consolidation remains a net opportunity for Dotdigital as organisations
prioritise fewer, more effective platforms with clear ROI.
Resilient profitability against strong comparator
The Group's adjusted PBT for the period was £8.9m (31 December 2024:
£10.0m), a margin of 20% (31 December 2024: 24%). As highlighted over the
previous year, the comparative period was an unusually strong comparator in
both the core CXDP business and the low‑margin CPaaS business as a result of
final contributions from an exited CPaaS contract and exceptional SMS volume
tied to specific transactional notification campaigns in H1 2025. In addition,
go to market investment were accelerated in Social Snowball which are expected
to benefit the growth rate in the second half and beyond.
Statutory profit before tax for the period was £6.2m (31 December 2024:
£8.4m) after exceptional and adjusting items of £2.7m (31 December 2024:
£1.6m); the increase in these items largely being as a result of Social
Snowball acquisition related items.
The effective tax rate on the statutory PBT for the period was unusually high
at 30% (31 December 2024: 25%), with the current period being adversely
impacted by approximately 3% as deferred tax charges were incurred as a result
of share award lapses occurring due to under performance in the share price
which are not expected to recur with such material effect in future periods.
The effective tax rate is further impacted by approximately 3% as tax losses
throughout the Group were materially utilised during the first half of FY25.
In turn this results in an adjusted diluted EPS of 2.26 pence per share for
the period (31 December 2024: 2.52 pence per share). All margins are expected
to return to market expected levels in the second half of FY26.
The Group embarked on its previously announced £3m share buyback during the
period, completing on £1.2m of this in the period and the balance shortly
after the period end.
Business Review: Platform strengths
Marketing teams continue to prioritise platforms that can prove ROI, unify
customer data with activation across channels, and operate with strong
governance as privacy expectations and regulation evolve. Rapid progress in AI
is reinforcing the premium on orchestration, workflow automation and embedded
measurement, so teams can move faster while keeping performance, trust and
accountability at the centre of execution.
Dotdigital's customer experience and data platform (CXDP) sits at the centre
of that workflow, bringing together customer data, segmentation and automation
with cross-channel execution across email, SMS, WhatsApp, push and web
experiences. The Group has also broadened workflow coverage through adjacent
capabilities within the portfolio, including Fresh Relevance for
personalisation, Social Snowball for influencer and advocacy-led acquisition,
and, post-period-end, Alia for on-site conversion and audience growth.
As AI adoption accelerates, the Board believes these structural strengths
become more valuable:
· Commercial alignment: Dotdigital is not priced on a per-seat basis. Customers
typically expand value through deeper adoption, higher-tier packages and
increased contacts and message usage.
· Data trust, governance and compliance: enterprise-grade controls that help
customers manage consent, privacy and reputational risk as standards and
regulations evolve.
· Deep integrations and ecosystem connectivity: broad integration coverage and
partner relationships that keep data flows and connectors effective as
adjacent platforms evolve.
· Trusted delivery infrastructure: owned messaging infrastructure and
deliverability controls that protect sender reputation and help legitimate
sending reach inboxes reliably at scale, supported by increasingly stringent
mailbox-provider requirements around authentication and sending practices.
· Suite architecture and expansion pathways: a modular platform that supports
"land-and-expand" adoption across data, channels and adjacent capabilities,
reducing reliance on any single point feature and increasing platform
stickiness over time.
This combination supports durable recurring revenues and a platform that is
difficult to replicate.
Acquisitions
Alia
Post period end, on 4 March 2026, the Group announced the acquisition of Alia
Software Inc., an AI-powered pop-up and email and SMS audience growth tool
built exclusively for Shopify merchants.
Alia is strategically important because it strengthens Dotdigital's platform
at the earliest moments of the customer lifecycle by converting anonymous
website visitors into known, consented audiences and capturing higher-quality
first-party and zero-party data that can be activated across the Group's CXDP.
It also accelerates the Group's product roadmap with a best-in-class on-site
conversion and list-growth capability, deepens the Group's Shopify ecosystem
presence and expands distribution via the Shopify App Store.
Alia has demonstrated strong momentum, serving 2,700+ customers with a 4.7/5
rating on the Shopify App Store and for the financial year ended 31 December
2025 ("FY25"), Alia reported recognised revenue of $4m, with ARR at 31
December 2025 in excess of $8m (31 December 2024: $1m). In FY25 Alia reported
cash EBITDA(4) in excess of $1m. Alia had net assets of $1.2m at 31 December
2025 and was acquired debt-free. All figures are unaudited.
The Board believes Alia expands the Group's workflow coverage in a way that
supports durable expansion economics: list growth drives larger addressable
audiences, which can increase downstream automation value, messaging volumes,
package upgrades and cross-sell into adjacent capabilities across the
platform.
Integration is expected to follow a phased approach, enabling the Group to
deliver incremental product benefits while maintaining continuity for existing
Alia customers.
The initial consideration for the Acquisition totalled $30m, with a total
maximum consideration of up to $60m dependent upon future performance. All
consideration is payable in cash, funded from existing cash reserves, and the
Acquisition is expected to be earnings-enhancing for the first 12 months of
consolidation. Should performance targets be achieved, the maximum
consideration payable would equate to two times ARR.
Alia will be integrated into the CXDP through a phased approach and
Dotdigital's core and ancillary capability, including messaging, will be
embedded into and bundled with Alia's offering, allowing the Group to deliver
incremental product benefits while maintaining service continuity for existing
customers.
Social Snowball
Following its acquisition in late June 2025, Social Snowball has performed
well and the integration is progressing to plan. ARR is up approximately 30%
on an annualised basis since acquisition, with an acceleration in growth rate
expected as go-to-market investments take effect. Social Snowball ARPC per
month increased from US$319 per month on acquisition to US$348 per month in
December. Social Snowball generated £2.3m of recurring revenue in the first
half, compared to approximately £1.2m in same half prior to acquisition.
The Group increased investment in go-to-market capability during the Period
and early H2 performance provides confidence in enhancing growth rates through
the second half.
Regions
All regions have maintained growth on a constant currency basis and the Group
will continue to focus its resources on capitalising on momentum in higher
growth regions or subregions. In particular, the Group aims to maximise the
scale that the Group now has in the US, circa 30% of ARR, in North America
post the acquisitions of Social Snowball and Alia. Post recent acquisitions
and complexities in reporting of the Group's growing number of multi region
customers, the Group is reviewing its methodology in respect of regional
growth rate reporting to ensure consistency. Full reporting on this will be
available in the full year financials.
Product innovation
Product development continued to reflect customer demand for sophisticated yet
easy-to-use platforms that unify data and personalisation across channels and
deliver measurable ROI. Functionality recurring revenues grew by 20% on HY-25
or 9% on an organic basis. During the period, the Group delivered enhancements
across the product suite, including continued strengthening of WinstonAI,
further momentum in WhatsApp adoption and the launch of CreatorSearch, a
creator discovery feature, within Social Snowball.
WhatsApp
WhatsApp adoption continued to build, with users sending 2.3x more WhatsApp
messages compared to H2 FY25 (128% growth). Black Friday and Cyber Monday
drove the biggest ever WhatsApp month in November 2025, with growth of more
than 400% versus the prior seasonal period.
WinstonAI and monetisation
WinstonAI is integrated into the CXDP to help customers work faster and drive
stronger outcomes. AI capabilities are available across packages, with more
advanced features and higher usage allowances unlocked at higher tiers,
reflecting the greater data and workflow complexity of larger deployments.
Most larger customers typically adopt the premium packages from day one. As
customers use these capabilities to improve performance, this can support
expansion in contacts and associated subscription fees, which in turn can
drive increased messaging usage and recurring volume-based fees.
Loyalty
The Group's loyalty product is now being tested in production environments by
early adopters, with positive results being generated for customers. The
product will complement the Group's core Dotdigital CXDP offering, adding
native loyalty programme functionality that is deeply embedded with a brand's
contact data. General availability is expected in July.
Roadmap focus
Looking ahead to H2 FY26 and beyond, the Group will focus product innovation
investment on strengthening data, AI with the release of MCP servers and 3
specific AI agents (analytics, segmenting data and campaign creation) and
further technology partner integrations, alongside continued enhancements to
internal infrastructure and processes.
Partnerships and integrations
The partner ecosystem continues to deepen, supporting adoption and expansion
across the platform. Revenue connected to integration partners grew 5% versus
the prior year. Standout organic growth came from Shopify of 44% or 118% when
also including the impact of Social Snowball. Shopify is now the Group's
second largest connected integration partner by revenue, representing 35% of
connected partner revenues, behind Adobe/Magento. Microsoft Dynamics grew 5%
and the ERP connection to NetSuite grew 5%.
The Group is particularly enthused with the impact of combining Alia's network
of Email and Marketing agency partners with the existing network of technology
and web agency partners, which are expected to bring further success for the
core product, including the new Loyalty product in the Shopify ecosystem as
well as for Alia's product outside of Shopify for both commerce and
non-commerce customers. Partners are very impactful in helping Dotdigital
expand its pipeline and increasing conversion rate.
Operations and scalability
During the period, the Group continued to invest in strengthening its
operational foundations to support scaling, while maintaining discipline on
costs and prioritising initiatives that improve execution and customer
outcomes.
The Group has taken steps to streamline its EMEA go-to-market function to
ensure an optimised structure and clearer accountability. The efficiencies
gained will be assessed for application across higher-growth regions during
H2, alongside other initiatives to support consistent execution and
scalability.
This will be led by a Chief Revenue Officer, a new role intended to centralise
and align go-to-market activities across regions, with a focus on expansion,
retention and enhancing customer lifetime value. The Group is in the final
stages of making this appointment and will provide an update in due course.
Alongside commercial execution, the Group's ongoing transformation of systems
and processes continued, with major progress made on its CRM replacement
programme. This is intended to improve data quality, reporting and workflow
efficiency across the organisation, supporting more consistent execution and
scalability as the Group grows internationally.
Current trading and outlook
Trading continues to be in line with the Board's expectations.
The Board remains confident in the Group's prospects and expects to deliver
FY26 results in line with constant currency market expectations, supported by
the high-visibility recurring revenues and a strong and growing product
portfolio. The Group's cash position and cashflow generation remains strong,
with cashflow generation being second half weighted in line with previous
years. Cash at 31(st) December 2025 totalled £36.1m prior to the Alia
acquisition for initial consideration of $30m. A modest overdraft facility is
being established to provide prudent support for mid-month working capital
needs, should it be required.
Dotdigital has built a powerful customer experience and data platform that
helps marketers turn first- and zero-party data into measurable outcomes at
scale. With WinstonAI integrated across key workflows, customers can plan,
execute and optimise cross-channel engagement across email, SMS, WhatsApp, ads
and web, with governance, deliverability and performance measurement embedded
as standard. The Board believes this combination of capability and
"under-the-bonnet" strength positions Dotdigital to remain central to
customers' marketing stacks as requirements become more demanding and
execution moves further towards automation. Despite macro pressures including
FX volatility, customer cost sensitivity and brand consolidation, which
presents both opportunities and challenges, with disciplined M&A having
provided extending workflow coverage, the Group is well placed to benefit from
ongoing consolidation onto fewer, more effective platforms, supporting
continued ARPC expansion and strong retention over time.
The Group remains well positioned to deliver sustainable growth and strong
cash generation through a differentiated, ROI-driven offering, disciplined
investment and a continued focus on high-quality recurring revenues.
Dotdigital Group Plc
Consolidated Income Statement
For the six months ended 31 December 2025
6 months 6 months 12 months
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
Note £'000s £'000s £'000s
Revenue from contracts with customers 4 44,192 42,365 83,921
Cost of sales (8,952) (9,258) (17,371)
Gross profit 4 35,240 33,107 66,550
Other income 300 390 736
Administrative expenses (27,105) (24,269) (49,765)
Operating profit from operations pre share based payments, amortisation of 8,435 9,228 17,521
acquired intangibles and exceptional costs
(450) (477) (702)
Share based payments
Amortisation of acquired intangibles (1,441) (893) (1,786)
Exceptional costs 7 (825) (273) (1,463)
Operating profit 5,719 7,585 13,570
Finance income 518 852 1,652
Finance costs (61) (77) (133)
Profit before income tax 6,176 8,360 15,089
Income tax expense (1,852) (2,054) (3,879)
Profit for the period attributable to the owners of the Company 4,324 6,306 11,210
Earnings per share (pence per share)
Basic 6 1.40 2.05 3.65
Diluted 6 1.39 2.00 3.55
Adjusted basic 6 2.29 2.58 4.93
Adjusted diluted 6 2.26 2.52 4.80
Dotdigital Group Plc
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2025
6 months 6 months 12 months
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
note £'000s £'000s £'000s
Profit for the period 4,324 6,306 11,210
Other comprehensive (expense)/income
Items that may be subsequently reclassified to
profit and loss:
Exchange differences on translating foreign operations (55) (3) (682)
Total comprehensive income attributable to:
Owners of the parent 4 4,269 6,303 10,528
Dotdigital Group Plc
Consolidated Statement of Financial Position
As at 31 December 2025
Note As at As at As at
31 Dec 2025 31 Dec 30 June
2024 2025
Unaudited Unaudited Audited
£'000s £'000s £'000s
Assets
Non-current assets
Goodwill 35,538 22,278 35,392
Intangible assets 47,539 37,578 48,356
Property, plant and equipment 2,118 2,404 2,350
85,195 62,260 86,098
Current assets
Trade and other receivables 16,652 18,429 17,320
Current tax recoverable 2,114 584 1,063
Cash and cash equivalents 36,100 45,681 36,211
54,866 64,694 54,594
Total assets 4 140,061 126,954 140,692
Equity attributable to the owners of the parent
Called up share capital 9 1,542 1,538 1,538
Treasury stock at cost 9 (1,507) - -
Share premium 12,786 12,786 12,786
Reverse acquisition reserve (4,695) (4,695) (4,695)
Other reserves 2,766 3,144 3,263
Retranslation reserve (506) 228 (451)
Retained earnings 96,136 89,024 90,669
Total equity 106,522 102,025 103,110
Dotdigital Group Plc
Consolidated Statement of Financial Position
As at 31 December 2025
As at As at As at
31 Dec 2025 31 Dec 2024 30 June 2025
Unaudited Unaudited Audited
£'000s £'000s £'000s
Liabilities
Non-current liabilities
Lease liabilities 996 1,449 1,249
Provisions 6,923 - 6,786
Deferred tax 7,974 5,748 8,307
15,893 7,197 16,342
Current liabilities
Trade and other payables 17,089 17,279 20,709
Lease liabilities 557 453 531
17,646 17,732 21,240
Total liabilities 33,539 24,929 37,582
Total equity and liabilities 140,061 126,954 140,692
Dotdigital Group Plc
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2025
Share Treasury Retained earnings Share premium Retranslation reserve Reverse Acquisition Other reserves Total equity
Capital Stock Reserve
£'000 £'000 £'000 £'000 £'000 £'000
£'000 £'000
Balance at 1 July 2024 1,538 - 82,505 12,786 231 (4,695) 2,835 95,200
Transfer in reserves - - 213 - - - (213) -
Deferred tax on share options - - - - - - 48 48
Share-based payments - - - - - - 474 474
Profit for the period - - 6,306 - - - - 6,306
Other comprehensive income - - - - (3) - - (3)
Balance as at 31 December 2024 1,538 - 89,024 12,786 228 (4,695) 3,144 102,025
Balance as at 1 January 2025 1,538 - 89,024 12,786 228 (4,695) 3,144 102,025
Dividends - - (3,375) - - - - (3,375)
Transfer in reserves - - 116 - - - (116) -
Deferred tax on share options - - - - - - 3 3
Share-based payments - - - - - - 232 232
Profit for the period - - 4,904 - - - - 4,904
Other comprehensive income - - - - (679) - - (679)
Balance as at 30 June 2025 1,538 - 90,669 12,786 (451) (4,695) 3,263 103,110
Balance as at 1 July 2025 1,538 - 90,669 12,786 (451) (4,695) 3,263 103,110
Issue of share capital 4 - - - - - - 4
Share buyback - (1,294) - - - - - (1,294)
Transfer in reserves - (213) 1,143 - - - (930) -
Deferred tax on share options - - - - - - (30) (30)
Share-based payments - - - - - - 463 463
Profit for the period - - 4,324 - - - - 4,324
Other comprehensive income - - - - (55) - - (55)
Balance as at 31 December 2025 1,542 (1,507) 96,136 12,786 (506) (4,695) 2,766 106,522
- Share capital is the amount subscribed for shares at nominal value.
- Treasury stock represents issued shares that have been repurchased and are
being held by the company.
- Retained earnings represents the cumulative earnings of the Group
attributable to equity shareholders.
- Share premium represents the excess of the amount subscribed for share
capital over the nominal value net of the share issue expenses.
- Retranslation reserve relates to the retranslation of foreign subsidiaries
into the functional currency of the Group.
- The reverse acquisition reserve relates to the adjustment required to
account for the reverse acquisition in accordance with UK adopted
International Financial Reporting Standards.
- Other reserves relates to the charge for the share-based payment in
accordance with IFRS 2 and the transfer on the exercise or lapsing of share
options.
Dotdigital Group Plc
Consolidated Statement of Cash Flows
For the six months ended 31 December 2025
6 months 6 months 12 months
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
note £'000s £'000s £'000s
Cash flows from operating activities 8 9,596 11,713 28,007
Interest paid (61) (77) (133)
Tax paid (2,946) (3,397) (5,533)
Net cash generated from operating activities 6,589 8,239 22,341
Cash flows from investing activities
Purchase of subsidiary net of cash acquired - - (14,469)
Purchase of intangible fixed assets (5,376) (5,033) (10,322)
Purchase of property, plant and equipment (180) (60) (315)
Sale of property, plant and equipment 4 - -
Interest received 518 852 1,652
Net cash used in investing activities (5,034) (4,241) (23,454)
Cash flows from financing activities
Equity dividends paid - - (3,375)
Share Buyback (1,294) - -
Payment of leasing liabilities (321) (474) (779)
Proceeds from share issues 4 - -
Net cash used in financing activities (1,611) (474) (4,154)
(Decrease)/Increase in cash and cash equivalents (56) 3,524 (5,267)
Cash and cash equivalents at beginning of period 36,211 42,160 42,160
Effect of foreign exchange rate changes (55) (3) (682)
Cash and cash equivalents at end of period 36,100 45,681 36,211
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
1. GENERAL INFORMATION
Dotdigital Group Plc is a company incorporated in England and Wales and quoted
on the AIM market.
2. BASIS OF INFORMATION
These consolidated interim financial statements have been prepared in
accordance with UK-adopted International Accounting Standards ('IAS') and on a
historical basis, using the accounting policies which are consistent with
those set out in the Group's annual report and accounts for the year ended 30
June 2025. The interim financial information for the six months to 31 December
2025, which complies with IAS 34 'Interim Financial Reporting' has been
approved by the Board of Directors on 9 March 2026.
The unaudited interim financial information for the period ended 31 December
2025 does not constitute statutory accounts within the meaning of Section 435
of the Companies Act 2006. The comparative figures for the year ended 30 June
2025 are extracted from the statutory financial statements which have been
filed with the Registrar of Companies and contain an unqualified audit report
and did not contain statements under Section 498 to 502 of the Companies Act
2006.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2025, as described in those
financial statements.
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
4. SEGMENTAL REPORTING
The Group's single line of business is the provision of an AI-powered customer
experience and data platform for intelligent, personalised marketing
engagement at scale The chief operating decision maker considers the Group's
reportable segments to be by geographical location this being EMEA, US and
APAC operations as shown below:
Geographical revenue and results
6 months to 31 December 2025
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 31,324 8,695 4,173 44,192
Gross profit 23,246 8,172 3,822 35,240
Profit before income tax 3,569 2,047 560 6,176
Total comprehensive income attributable to the owners of the parent 1,572 2,174 523 4,269
Financial position
Total assets 120,127 16,280 3,654 140,061
Net current assets 29,854 4,853 2,513 37,220
6 months to 31 December 2024
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 31,346 6,801 4,218 42,365
Gross profit 23,138 6,074 3,895 33,107
Profit before income tax 6,953 1,062 345 8,360
Total comprehensive income attributable to the owners of the parent 4,724 990 589 6,303
Financial position
Total assets 116,634 9,061 1,259 126,954
Net current assets 43,128 3,060 774 46,962
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
4. SEGMENTAL REPORTING (CONTINUED…)
6 months to 31 December 2024
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 31,346 6,801 4,218 42,365
Gross profit 23,138 6,074 3,895 33,107
Profit before income tax 6,953 1,062 345 8,360
Total comprehensive income attributable to the owners of the parent 4,724 990 589 6,303
Financial position
Total assets 116,634 9,061 1,259 126,954
Net current assets 43,128 3,060 774 46,962
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
4. SEGMENTAL REPORTING (CONTINUED…)
12 months to 30 June 2025
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 61,556 14,042 8,323 83,921
Gross profit 46,024 12,838 7,688 66,550
Profit before income tax 11,813 2,592 684 15,089
Total comprehensive income
attributable to the owners of the parent 7,983 1,673 872 10,528
Financial position
Total assets 122,272 15,873 2,547 140,692
Net current assets 26,939 4,820 1,595 33,354
5. DIVIDENDS
The proposed final dividend of £3,690,000 for the year ended 30 June 2025 of
1.21p per share was paid on 30 January 2026.
6. EARNINGS PER SHARE
Earnings per share data is based on the consolidated profit using the weighted
average number of shares in issue of the parent Company. Basic earnings per
share are calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding
during the period.
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares. Adjusted earnings per share is based on the consolidated profit
deducting the acquisition related exceptional costs and share-based payment.
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
6. EARNINGS PER SHARE (CONTINUED…)
A number of non-IFRS adjusted profit measures are used in the annual report
and financial statements and in these interim financial statements. Adjusting
items are excluded from our headline performance measures by virtue of their
size and nature, in order to reflect management's view of the performance of
the Group. Summarised below is a reconciliation between statutory results to
adjusted results. The Group believes that alternative performance measures
such as adjusted EBITDA are commonly reported by companies in the markets in
which it competes and are widely used by investors in comparing performance on
a consistent basis without regard to factors such as depreciation and
amortisation, which can vary significantly depending upon accounting methods
(particularly when acquisitions have occurred) or based on factors which do
not reflect the underlying performance of the business. The adjusted profit
after tax earnings measure is also used for the purpose of calculating
adjusted earnings per share.
Reconciliations to earnings figures used in arriving at adjusted earnings per 6 months to 31 Dec 2025 6 months 12 months to 30 June 2025
share are as follows:
to 31 Dec 2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit for the year attributable to the owners of the parent 4,324 6,306 11,210
Amortisation of acquisition-related intangible fixed asset 1,441 893 1,786
Professional costs in relation to the acquisition - - 750
Other exceptional costs 825 273 713
Share-based payment 450 477 702
Adjusted profit for the year attributable to the owners of the parent 7,040 7,949 15,161
Management does not consider the above adjustments to reflect the underlying
business performance.
6 months 6 months 12 months
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
Earnings per Ordinary share:
Basic (pence) 1.40 2.05 3.65
Diluted (pence) 1.39 2.00 3.55
Adjusted basic (pence) 2.29 2.58 4.93
Adjusted diluted (pence) 2.26 2.52 4.80
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
6. EARNINGS PER SHARE (CONTINUED…)
6 months 6 months 12 months to 30 June 2025
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit for the period for the purpose
of earnings per share: 4,324 6,036 11,210
Basic 7,040 7,949 15,161
Adjusted
Weighted average number of shares in issue as follows:
6 months 6 months 12 months
to 31 Dec to 31 Dec 2024 to 30 June 2025
2025
Unaudited Unaudited Audited
Weighted average number
Basic 307,822,833 307,508,354 307,508,354
Diluted 311,108,771 315,789,638 316,118,333
The adjusted profit for the period, adjusted basic earnings per ordinary share
and adjusted diluted earnings per ordinary share exclude exceptional costs
£825,000 (2024: £273,000, FY25: £1,463,000), amortisation of acquired
intangibles £1,441,000 (2024: £893,000, FY25: £1,786,000 and share based
payments £450,000 (2023: £477,000, FY25: £702,000).
7. EXCEPTIONAL COSTS
6 months 6 months 12 months
to 31 Dec 2025 to 31 Dec 2024 to 30 June 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Professional costs in relation to the acquisition 389 4 750
Surrender of Croydon office lease - 264 264
Restructuring costs 100 - 166
Professional fees related to the valuation of share options 5 5 13
Adjustment to Useful Economic Life of CRM due to replacement - - 270
New CRM implementation 247 - -
Employers NI paid on the exercise of LTIPs 84 - -
825 273 1,463
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
8. RECONCILIATION OF PROFIT BEFORE CORPORATION TAX TO CASH GENERATED FROM
OPERATIONS
6 months 6 months 12 months
to 31 Dec to 31 Dec 2024 to 30 June 2025
2025
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit before tax from all operations 6,176 8,360 15,089
Adjustments for:
Amortisation 6,209 5,011 10,480
Depreciation 392 481 839
Finance lease non-cash movement 65 37 67
Loss on disposal of fixed assets - - 33
Share-based payments 463 474 702
Finance income (518) (852) (1,652)
R&D tax credit (300) (390) (736)
Finance expense 61 77 133
Decrease/(increase) in trade receivables 668 (418) 691
(Decrease)/increase in trade payables (3,620) (1,067) 2,361
Net cash from operations 9,596 11,713 28,007
9. CALLED UP SHARE CAPITAL
During the period ended 31 December 2025, 948,592 ordinary shares of £0.005
per share (2024: nil, FY25 nil) were issued.
During the period ended 31 December 2025, 2,641,000 ordinary shares of £0.005
per share (2024: nil, FY25 nil) were purchased for a total consideration of
£1,294,000. These shares are held in treasury.
The issued share capital as at 31 December 2025 was 308,456,946 Ordinary
Shares of £0.005 per share (2024: 307,508,354 Ordinary Shares of £0.005 per
share, FY25: 307,508,354 Ordinary Shares of £0.005 per share).
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
10. RELATED PARTY NOTE
Transactions between the company and its subsidiaries, who are related
parties, have been eliminated on
consolidation and are not disclosed in this note.
Key management remuneration:
Key management include Directors and non-executive Directors
The remuneration paid for key management for employee services are as follows:
12 months
6 months 6 months to 30 June 2025
to 31 Dec 2025
to 31 Dec 2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Aggregate emoluments 463 439 1,021
Share-based payments on the LTIP options granted 148 89 (27)
Company contributions to money purchase pension scheme 17 17 33
628 545 1,027
During the year ended 30 June 2025, the Chief Executive Officer was granted a
PSP award over 688,389 shares. These become exercisable subject to continued
service and the Company's relative three-year total shareholder return and
earnings per share in respect of the year ending 30 June 2027.
During the period ended 31 December 2025, the Chief Executive Officer and
Chief Financial Officer were granted a PSP award over 948,224 shares and
596,026 shares respectively. These become exercisable subject to continued
service and the Company's relative three-year total shareholder return and
earnings per share in respect of the year ending 30 June 2028.
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
11. ADJUSTED PROFIT BEFORE TAX
6 months 6 months 12 months to
to 31 Dec 2025
to 31 Dec 2024
30 June 2025
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit before income tax 6,176 8,360 15,089
Amortisation of acquired intangibles 1,441 893 1,786
Professional costs in relation to the acquisition 389 4 750
Other exceptional costs 436 269 713
Share-based payments 450 477 702
Adjusted profit before tax 8,892 10,003 19,040
Amortisation charge* 4,768 4,118 8,424
Depreciation charge* 392 481 839
Finance income (518) (852) (1,652)
Finance costs 61 77 133
Adjusted EBITDA 13,595 13,827 26,784
* Both amortisation of intangibles and depreciation charge will not agree to
the relevant notes as these numbers exclude amounts capitalised as development
expenditure and amounts included in exceptional costs.
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2025
12. EVENTS AFTER THE BALANCE SHEET DATE
On 4th March 2026, the Group announced the acquisition of Alia Software Inc.
The initial consideration for 100% of the company's share capital is $30m,
with a total maximum consideration of up to $60m dependent upon future
performance. The acquisition accelerates the Group's product roadmap with a
high-growth and market‑leading on‑site conversion and list‑growth
solution. The combined offering strengthens Dotdigital's ability to engage
customers at the earliest stages of the customer journey by improving
visitor‑to‑subscriber conversion, enriching customer data and increasing
the effectiveness of downstream marketing automation.
Due to the proximity of the acquisition to the date of authorisation of these
interim statements, the initial accounting for the business combination is
incomplete. As a result, it is not yet possible to provide a reliable
estimate of the financial effect of the acquisition on the Group's statement
of financial position
Copies of this interim statement are available from the Company at its
registered office at, No 1 London Bridge London, SE1 9BG. The interim
financial information document will also be available on the Company's website
www.dotdigitalgroup.com.
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